Just like that, April is here tomorrow. Time flies when diesel fuel is still debating what it wants to do for 2016. The market is strong on diesel this afternoon EST, up $.0200. This could be from the U.S. dollar dropping off today -.359. As we all know, the U.S. dollar has an inverse relationship with the oil market. We continue to see records set with the DOE report showing crude rising 2.3 million bbls to another record high of 534.8 million bbls. Gas is down $.0170 today. Crude seems to be sticking around $38-$39 a bbl.
PVM reported “A mixed set of data from the EIA on U.S. oil inventories eventually turned out to be more on the negative side. To begin with, total commercial oil inventories rose by 1.5 million bbls to 1.356 billion bbls, a fresh all-time high. Although crude oil inventories rose by less-than-expected they still managed to hit a new high of 535 million bbls. Interestingly, the second consecutive weekly drop in Cushing stocks did nothing to support the front-month WTI spread which weakened by 11 cents/bbl to -$1.34/bbl yesterday. Although WTI managed a gain of 4 cents/bbl on the day it fell $1.53/bbl from the pre-EIA high.” That statement seems to sum up why we see a stronger market on diesel today.
Focusing on a global scale, Kuwait says that the Al-Khafji oilfield, which is co-owned by Kuwait and Saudi Arabia, will be reopened. The field was producing approximately 300,000 bpd when it was closed in October of 2014. This will just add to the global glut of crude we are so used to seeing.
-German consumer prices rose by 0.1% in March from a year ago and inched out of deflation following a 0.2% fall in the headline rate last month
-The Dow registered its fourth straight daily advance as remarks by the President of the Chicago Fed mirrored Janet Yellen’s wariness.
-Overnight, stocks in Asia ended a difficult quarter on a subdued note with the Shanghai Composite and Nikkei 225 registering double-digit percentage losses for the period.